Introduction to Management
Introduction :
Management is universal in the modern industrial world and there is no
substitute for good management. It makes human effects more productive and
brings better technology, products and services to our society. It is a crucial
economic resource and a life giving element in business. Without proper
management, the resources of production ( men, machines and materials,
money ) can not be converted into production. Thus management is a vital
function concerned with all aspects of the working of an organization.
Management is an art of getting work done through others in an efficient
and effective manner directing the efforts of individuals towards a common
objective.
Management is the process of designing and maintaining an environment
in which individuals , working together in groups , efficiently accomplish
selected aims.
Definitions of Management
According to Harold Koontz “ Management is the art of getting things
done through and with formally organized groups .
According to Henri Fayol, "To manage is to forecast and to plan, to
organize, to command, to co-ordinate and to control."
According to F. W. Taylor- “Management is an art of knowing what is to be
done and seeing that it is done in the best possible manner.”
KEY POINTS
Involves managerial functions - As managers, people carry out the
managerial functions of planning, organizing, staffing , directing and
controlling.
Universal application – Management applies to any kind of organizations.
Pervasive in nature – It applies to managers at all organizational levels.
Objective centric – The aim of all managers is to create a surplus or meet
the organizational goals.
Maintaining the productivity – Managing is concerned with productivity this
implies effectiveness and efficiency.
WHY MANAGERS ARE IMPORTANT?
Managers identify critical issues and form responses
Create and coordinate systems to gets things done.
Manager/ employee relationship drives loyalty
Managers affect financial problems.
WHO ARE MANAGERS? WHERE DO THEY WORK?
Coordinate and oversee work of other people.
Senior/Middle/Line Management.
Mangers work in organizations.
Objective
People
Structure
NATURE OF MANAGEMENT
Management is an Offspring of corporate activity.
A Universal Process.
It is a universal problem of all groups and associations.
Management is a Science as well as an Art. Principles have universal
application.
Management as a Profession. Systematic and specialized body of
knowledge consisting of principles, techniques, rules and laws.
Distinct process
Social process
Dynamic process
Comprehensive process
Management is a group activity
Management is integrating and creative process
Management is goal oriented process
Management is what management does
Getting things done through others.
Management is a Profession. Systematic and specialized body of knowledge
Management is Intangible : Management has to be performed
continuously, in a rapidly every changing business environment.
Scope of management
We can divide its scope into two sections for better understanding.
Activities based scope
Planning
Organization
Staffing
Coordination
Directing
Controlling
Functional Areas of Management
These include:
Financial Management includes accounting, budgetary control, quality
control, financial planning, and managing the overall finances of an
organization.
Personnel Management includes recruitment, training, transfer
promotion, demotion, retirement, termination, labor-welfare, and social
security.
Purchasing management includes inviting tenders for raw materials,
placing orders, entering into contracts, and materials control.
Production Management includes production planning, production
control techniques, quality control and inspection.
Maintenance Management involves proper care and maintenance of the
buildings, plants, and machinery.
Transport Management includes packing, warehousing, and
transportation by rail, road, and air.
Distribution Management includes marketing, market research, price-
determination, taking market risk and advertising, publicity, and sales
promotion.
Office Management includes activities to properly manage the layout,
staffing, and equipment of the office.
Development Management involves experimentation and research of
production techniques, markets, etc.
Management is an Inter-Disciplinary Approach
For the correct implementation of the management, it is important to
have knowledge of commerce, economics, sociology, psychology, and
mathematics.
Universal Application
The principles of management can be applied to all types of
organizations irrespective of the nature of tasks that they perform.
Management plays a unique role modern society.
Peter F. Drucker has summarized the essence of management as “ under
developed countries are under managed, it denotes the multidimensional
significance of management.
The significance of management can be broadly classified into the
groups.
1. Advantages to the organization.
2. Advantages to the society.
Advantages to the Organization :
(i) Determination of Objectives : The success of various operations of an
organization mainly depends on the identification of its objectives.
Objectives are identified and laid down by the management. They should be
the writing and communicated to all others in the management.
(ii) Achieving of objectives : It is the management which directs the group
effort towards the achievement of various objectives. It brings the human
and non- human resources together.
( iii ) Meeting challenges : All the policy decisions of an enterprise are
taken by the management. It keeps in touch with the current
environment and predicts what is going to happen in future. Through
better planning and control, management steers a concern to meet the
demands of the changing environment.
( iv) Provides innovation : Management infuses an enterprise with new
ideals, imaginations and vision
( v) Smooth running of business : Management helps in smooth running of
business through better planning and control.
Advantages to the Society :
(i) Optimum utilization of Resources : It is the management which makes
optimum utilization of various resources such as land, labour, capital and
enterprise. “ No ideology, no ism, no political theory can win greater
output with less efforts, only sound management”, says Urwick and
Brech.
ii) Social Benefits: Management raises the standared of living of the
people by providing good quality products at the lowest prices. It also
promotes peace and prosperity in the society through optimum use of
scarce resources.
( iii )Role in national economic development : “Management is the crucial
factor in economic and social development”, says Peter F. Druker. The
development of a nation mainly depends on the quality of management
of its resources. It is all the more true in a developing country like India,
where productivity is low and the resources are limited.
( iv ) Employment : The expansion and diversification activities of the
managers in organizations create more employment to the society. This is
very essential for our country.
